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Oil trades close to 2-month lows amid global supply glut

Published 07/19/2016, 03:52 AM
Updated 07/19/2016, 03:52 AM
© Reuters.  Oil falls back towards 2-month lows amid global supply glut

© Reuters. Oil falls back towards 2-month lows amid global supply glut

Investing.com - Oil prices added to overnight losses in European trade on Tuesday, falling back towards the lowest level in two months amid ongoing concerns over a global supply glut.

Crude oil for September delivery on the New York Mercantile Exchange dipped 24 cents, or 0.52%, to trade at $45.70 a barrel by 07:52GMT, or 3:52AM ET.

A day earlier, New York-traded oil futures lost 71 cents, or1.52%, amid signs of an ongoing recovery in U.S. drilling activity.

According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. increased by six last week to 357, the third straight weekly rise and the sixth increase in seven weeks.

The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery shed 23 cents, or 0.49%, to $46.73 a barrel, after falling 65 cents, or 1.37%, on Monday, as market players dismissed worries of supply disruptions from the failed coup attempt in Turkey.

Market players now looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products. The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.3 million barrels.

Latest comments

Oil will not remain low for long. With increasing demand globally especially from India. oil will certainly bounce back. a long oil investment will definitely be a wise choice now.
Harsco has a partnership with Brand Energy. Brand Energy’s bonds were downgraded deep into junk territory. Bankruptcy is a possibility in a situation like this. Harsco should look into dissolving its partnership with Brand Energy.. . Brand Energy has had 7 owners since 1996 and isn’t the most stable company. It’s owned by Clayton, Dubilier, and Rice. The CEO at Brand and the ex-GE people he brought in need to be removed. The Houston area is particularly bad and the executives there should definitely be removed. Brand Energy is always getting sued or is suing someone. Clearly, they need a total change of management..
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